Here's a breakdown:
* Lo: This is the masculine singular form of the direct object pronoun "it".
* Estoy: This is the present tense form of the verb "estar" (to be).
Example sentences:
* Lo estoy haciendo. (I am doing it.)
* Lo estoy pensando. (I am thinking about it.)
* Lo estoy sintiendo. (I am feeling it.)
Important note: The meaning of "lo estoy" depends on the context. To understand the full meaning, you need to consider the preceding sentence or conversation.